Muhammad v. Alto Pharmacy LLC

CourtDistrict Court, S.D. New York
DecidedSeptember 4, 2024
Docket1:23-cv-11315
StatusUnknown

This text of Muhammad v. Alto Pharmacy LLC (Muhammad v. Alto Pharmacy LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Muhammad v. Alto Pharmacy LLC, (S.D.N.Y. 2024).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DOC #: nnn nnn nnn nnn nnn nnn nen X DATE FILED: 9/4/2024 AFIYFAH MUHAMMAD, et al., Plaintiffs 23-CV-11315 (KHP) -against- OPINION AND ORDER ON MOTION TO DISMISS AMENDED ALTO PHARMACY LLC, et al., COMPLAINT Defendant. +--+ ----X KATHARINE H. PARKER, United States Magistrate Judge: Plaintiffs Afiyfah Muhammad, Darwin Wilson, and Dominique Skinner? bring this action on behalf of themselves and a putative class and collective against Defendant Alto Pharmacy LLC (“Alto”) for violations of the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. and New York Labor law. Their claims are all premised on the allegation that they were misclassified as independent contractors. Assuming they were misclassified, they allege they were not paid in accordance with applicable law and seek unpaid wages, including overtime pay and spread of hours pay, unreimbursed costs, tips that were wrongfully withheld, liquidated damages, statutory penalties for failure to provide wage notices and proper wage statements, and attorneys’ fees and costs. Alto has filed a motion pursuant to Federal Rules of Civil Procedure 12(b)(6) and 12(b)(2) to dismiss the Amended Complaint (“Compl.”). (ECF No. 39) For the reasons set forth below, the motion is granted in part and denied in part.

1 Additionally, Plaintiff Venezia Mendoza is an opt-in Plaintiff.

FACTUAL ALLEGATIONS Alto is a venture capital backed app-based “digital pharmacy.” (Compl. ¶ 21.) It is headquartered in San Francisco, California. (Id. ¶ 22.) It maintains a principal place of

business at 100 Park Avenue in New York City, where it operates a licensed pharmacy. (Id. ¶¶ 25-26.) Alto interacts with its customers and delivery/couriers principally through digital applications. (Id. ¶ 47.) It uses a software called “When I Work” (“WIW”) to track its couriers’ workflow. (Id. ¶ 48.) WIW’s capabilities include employee tracking, scheduling and payroll. (Id. ¶ 49.) Alto also uses Slack for communications and messaging with and

among its couriers. (Id. ¶ 50.) Plaintiffs all worked for Alto as delivery persons or prescription couriers at its Park Avenue location. Muhammad worked as a delivery driver, and Wilson and Skinner worked as a prescription couriers. (Id. ¶¶ 9, 11, 16.) Muhammad was employed from in or about September 2022 through the present.2 (Id. ¶ 7.) Wilson was employed from in or about January 2022 through July 2023. (Id. ¶ 11.) Skinner was employed from in or about March

2022 through February 2023. (Id. ¶ 16.) Muhammad and Wilson are authorized to drive and maintain car insurance. (Id. ¶¶ 10, 15.) The distinction between a delivery driver and prescription courier is not clear from the Amended Complaint, although the pleading is drafted as if these positions were interchangeable. Each Plaintiff submitted an online application to work as a courier for Alto, after which they were invited to a mandatory company orientation where they were introduced

2 Subsequent to the filing of the Amended Complaint, in or about July 2024, Muhammad ceased working for Alto. (ECF No. 43) 2 to Alto’s operations and workplace rules. (Id. ¶¶ 42-43.) Thereafter, Plaintiffs were required to attend a mandatory training session that provided additional details about Alto’s workplace rules, software and operating technology, including WIW and Slack. (Id. ¶

44.) Plaintiffs were given a contractor agreement to sign and assigned an employee id number. (Id. ¶ 45.) To be scheduled to work, couriers must log into the WIW app and select “shifts” for the week. Shifts are in four-to-five hour time slots, with each day divided into a morning shift and an afternoon shift. (Id. ¶¶ 52-53, 55.) Upon selecting their shift, couriers are

assigned routes, which consist of a set number of Alto customers along the route who have ordered prescriptions from Alto. (Id. ¶ 55.) The Amended Complaint does not state whether delivery drivers followed the same procedures as couriers. The Amended Complaint also does not state whether delivery routes were exclusively within New York City, where Plaintiffs started their routes (presumably at the Park Avenue location where they picked up the prescriptions), or whether Plaintiffs had to report back to Alto’s Park

Avenue location upon completion of their routes. Muhammad’s responsibilities as a delivery driver included arriving on time for her shift and delivering prescriptions on a prescribed route while ensuring great customer service. (Id. ¶ 9.) Job requirements included having a valid drivers license, general liability and motor vehicle insurance, a track record of good attendance, a positive attitude, flexibility, speaking English, and having a passion for customer service. (Id.) The Amended

Complaint does not specify the duties and qualifications for the position of prescription 3 courier as opposed to delivery driver, but it can be inferred from the complaint that Wilson and Skinner utilized the WIW app to sign up for shifts to deliver pharmacy prescriptions to Alto’s customers in and around New York City and that their duties consisted of delivering

prescriptions. Plaintiffs allege that they regularly worked six days per week, Mondays through Saturdays from 8:00 a.m. to 9:00 p.m. or until the final delivery was made for the day. (Id. ¶ 54.) They allege that they made between 13 and 17 deliveries per shift, which the Court interprets to mean that each Plaintiff made between 26 and 34 deliveries per day (because

there were two shifts per day). (Id. ¶¶ 52-53, 56.) They allege that other couriers also typically worked both morning and afternoon shifts. (Id. ¶ 57.) Couriers are required to clock into work at the beginning of the morning shift and clock out at the end of that shift and then again required to clock in at the beginning of the afternoon shift and out at the end of that shift. (Id. ¶ 57.) According to Plaintiffs, couriers are not compensated for the time between clocking out at the end of the morning shift and clocking in at the beginning of the afternoon shift.3 (Id. ¶ 58.) Plaintiffs also assert that couriers are not compensated

for time waiting to pick up packages to deliver. (Id. ¶ 59.) The Amended Complaint does not make clear when the waiting time occurs (that is, whether it happens before the commencement of a shift, during shifts, or between morning and afternoon shifts). The

3 Plaintiffs do not provide the end time of the morning shift, but the Court infers that it ends at either noon or 1:00 p.m. because of the allegation that each shift is four or five hours. Plaintiffs likewise do not provide a start time for the afternoon shift, but the Court infers it starts at 4:00 or 5:00 p.m. for the same reason. Thus, the Court infers there is a break in the middle of the day between shifts of about four hours based on the allegations (that is, a mid-day break sometime between the hours of 12:00 p.m. and 5:00 p.m.). 4 Amended Complaint asserts that couriers are expected to work through each shift without a break and are not compensated for meal or break time. (Id. ¶ 66.) The Amended Complaint does not state whether these allegations apply equally to all delivery drivers, but

the allegations, while not entirely clear, suggest that Muhammad worked the same hours as Skinner and Wilson. Couriers were paid a flat rate of $21.50 per hour and not paid time and a half for hours worked above 40 in a workweek. (Id. ¶¶ 60-61.) The Amended Complaint does not state whether the pay for delivery drivers differed from courier pay, but it does state that

Plaintiff Muhammad was paid at a flat rate of $21.50. (Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Barrentine v. Arkansas-Best Freight System, Inc.
450 U.S. 728 (Supreme Court, 1981)
Arbaugh v. Y & H Corp.
546 U.S. 500 (Supreme Court, 2006)
Erickson v. Pardus
551 U.S. 89 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
A.I. Trade Finance, Inc. v. Petra Bank
989 F.2d 76 (Second Circuit, 1993)
Lundy v. Catholic Health System of Long Island Inc.
711 F.3d 106 (Second Circuit, 2013)
Dejesus v. HF Management Services, LLC
726 F.3d 85 (Second Circuit, 2013)
Sharkey v. Quarantillo
541 F.3d 75 (Second Circuit, 2008)
TransUnion LLC v. Ramirez
594 U.S. 413 (Supreme Court, 2021)
Bellin v. Zucker
6 F.4th 463 (Second Circuit, 2021)
Whitaker v. American Telecasting, Inc.
261 F.3d 196 (Second Circuit, 2001)
Gamero v. Koodo Sushi Corp.
272 F. Supp. 3d 481 (S.D. New York, 2017)
Abbott v. Comme Des Garcons, Ltd.
84 F.4th 110 (Second Circuit, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
Muhammad v. Alto Pharmacy LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muhammad-v-alto-pharmacy-llc-nysd-2024.